The S&P 500 Index (SPX – 1,113.84) giving up 1.2 points, it maintained atop the 1,100 level, and is now virtually neck-and-neck with its 200-day moving average(1113.93).
I still believe this rally will bring the market to a secondary high to around 1075-1079 before it starts the second phase of our bear market. There are three more critical resistances to break before the bulls can complete their journey. 1113-1117 is the first hurdle, 1131 is the second hurdle 1145-1150 is the third hurdle.
We are dealing with the first resistance 1113-1117, market actually poked to 1120.95 today, but the selling pressure entered the market right after that. I don't think this resistance can stop the current upward momentum, well, I always suggest to let the market talk first and we react afterward because market sometimes perform without a logical reason.
Tomorrow I will place limit order to short this market at 1130 and add one more contract if the market go up to 1145-1150. Patient traders should wait until 1145 which is the 100% projection(The second leg low 1056.88 to our second leg high projection 1145.43) from the low of first leg rally 1010.91 to the high of 1099.46. However, I really doubt the market has the momentum to go up this far without any interruption from our second hurdle 1131.
If my prediction is correct, market will pause and correct at 1145-1150 before it begin the fifth wave rally to 1175-1179, however, nobody can ensure the market will go to a certain point except god. Therefore, get ready for any sudden upward momentum spur or momentum reverse to downside.
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